Bang & Olufsen

Annual report 2019/20 - Seite 2

• Revenue was DKK 377m (DKK 618m), corresponding to a decline of 39.0% (-39% in local currency). The impact from the COVID-19 outbreak resulted in temporary store closures in all markets and was the reason for the decline.
• The gross margin was 39.4% (48.5%), down by 9.1pp and 6.0pp excluding the effect of currency hedges. Gross margin was impacted negatively by several factors related to COVID-19 e.g. higher discounts on certain products, and higher revenue sharing for sales through the company’s e-commerce platform. Furthermore, the margin was impacted negatively by sales of end-of-life products and allocation of production-related capacity costs.
• EBIT was DKK -140m (DKK -66m) equivalent to a margin of -37.1% (-10.7%), impacted by lower revenue and gross margin, partly offset by lower capacity costs. Before special items, the margin was -30.0%.
• Free cash flow was DKK -99m (DKK -69m), impacted negatively by the decline in EBITDA partly offset by a reduction in net working capital.

Outlook
The outlook is unchanged compared to the preliminary guidance for 2020/21 published in company announcement 19.22 on 12 May 2020.

• Revenue:                                           Approx. DKK 2.2bn
• EBIT before special items:                Approx. DKK -100m
• Free cash flow:                                 Approx. DKK -200m

The outlook has higher uncertainties due to COVID-19.

On 1 July 2020, the company completed the rights issue raising approx. DKK 356m in net proceeds. The proceeds from the rights issue will enable Bang & Olufsen to continue to unfold the recently launched strategy.
       
Conference call for analysts and investors
The company will on 7 July 2020 at 10:00 CEST host a webcast, where the financial development for the full year and Q4 2019/20 will be presented.

The webcast can be accessed through https://bo.eventcdn.net/1920fy

Dial-in details for participants in the Q&A:
DK: [phone]
UK: [phone]
US: [phone]

For further information, please contact:

Martin Raasch Egenhardt
Director, Investor Relations
Phone: [phone]

Jens Gamborg
Head of Group Communications
Phone: [phone]

Attachments

• BO_2009_Annual report 2019-20_UK
• B&O_Annual report 2019-20